Stock Market This Week (US): Why did S&P 500 fall into a bear market? Check out the key highlights

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Stock Market This Week

Stock Market This Week (US)

The broader equity market continued its downtrend amid aggressive rate hikes and recession fears. The Dow was down and the S&P 500 lost 2.9% each, while the tech heavy NASDAQ ended 2.7% lower.

US stock market this week: Stocks movement this week

The US equity market started the week on a negative note on Monday as market participants were rattled by the Fed’s rigorous interest rate hike decision and near-term recession fears. All the three major stock indexes ended in negative territory.

US stock markets closed mixed on Tuesday following mixed economic data. The Dow and the S&P 500 continued their free fall while the Nasdaq Composite ended in green.

US markets closed sharply higher on Wednesday amid decline in US government bond yields and Bank of England's intervention to stabilize the UK’s financial market. All the three major stock indexes ended in positive territory.

US stocks closed sharply lower on Thursday and gave up all gains. Investors’ sentiment dented significantly on negative analysts calls on Apple iPhone 14 demand going forward. 

US stocks recorded another week of sharp losses on Friday ending the month and quarter in red and all three major averages into a bear market.

US stock market this week: Major events

S&P 500 into a bear market: The S&P 500 Index broke below its mid-June lows and fell back to November 2020 levels. The week closed out a third consecutive quarter of declines for the index for the first time since 2009. The S&P 500 is fell 25% since Jan 2022.

Personal Consumption Expenditure: The core (less food and energy) personal consumption expenditures (PCE) price index, widely recognized as the Fed’s preferred inflation gauge, rose at an annualized pace of 4.7% in the second quarter—well above expectations of around 4.4%.

Housing market: The housing sector is deeply impacted by the Fed’s rate hikes through rising mortgage rates. New home sales surprised investors by increasing nearly 29% in August to hit a five-month high. Yet pending sales of both new and existing homes fell slightly.

Other Economic updates: Weekly jobless claims fell to 193,000, well below consensus expectations and their lowest level since late April. Prices of U.S. Treasuries rallied after the Bank of England intervened to stabilize the UK government bond market, leaving the 10-year U.S. Treasury note yield modestly higher for the week. 

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